The Friday Five: Google acted illegally court rules, TikTok scraps Lite programme in EU, and UK urges platforms to tackle hate online

Hello all and welcome to this week's Friday Five! As we do every week, we're going to be breaking down five of the biggest, most important stories from across the worlds of social media, tech, and marketing.

In today's edition, we look at the massive news from a US court which ruled that Google did act illegally to maintain its dominance as well as X's latest lawsuit against an ad coalition in light of diminishing ad revenue.

The prospect of a TikTok ban in the EU has diminished somewhat after the company bowed to pressure from the government which is another story we'll be covering as well as a study which shows the power of ad campaigns that look to break taboos. Finally, after a week where far-right violence took place in England, we look at an open letter to social media companies which encourages them to take action before the Online Safety Act comes into force.

With a lot to get through let's not waste another second and dive straight in!

1. Google acted illegally to crush competition and maintain search dominance, court rules

A US federal judge has ruled that Google engaged in illegal practices to crush competition and maintain its dominance in online search and advertising.

This landmark decision marks a significant blow to Alphabet, Google's parent company, and may reshape business practices for technology giants.

The ruling stems from a 2020 lawsuit filed by the US Department of Justice, which accused Google of controlling around 90% of the online search market. This case, viewed as a potential existential threat to Google, is part of broader efforts by US antitrust authorities.

Judge Amit Mehta's opinion concluded that Google paid billions to ensure it remained the default search engine. The decision highlights Google's monopolistic behaviour, with the company spending over $10 billion annually to maintain its search engine's default status across various platforms.

The specific penalties Google and Alphabet will face are yet to be determined, with remedies, possibly including the breakup of the company, to be decided in a future hearing.

Google has announced plans to appeal the ruling, asserting that the decision unfairly penalises the company for making its search engine readily available.

US Attorney General Merrick Garland praised the ruling as a historic victory for the American people, reinforcing the message that no company is above the law.

For more on this landmark decision visit Forbes .

2. With ad revenue collapsing, X and Musk file suit against ad coalition

X has filed a federal antitrust lawsuit against an advertising industry coalition, including CVS Health, Mars, Orsted, and Unilever.

The lawsuit alleges that the coalition, the Global Alliance for Responsible Media (GARM), unfairly discriminated against X, resulting in an advertising boycott.

GARM, established by the World Federation of Advertisers (WFA) in 2019, sets brand safety standards for digital advertisers. Recently, conservative media firms, supported by conservative lawmakers, have accused GARM of colluding with ad-buying giant GroupM to prevent ads from appearing on conservative platforms.

This lawsuit, filed in the U.S. District Court for the Northern District of Texas, claims GARM conspired to withhold billions in advertising revenue from X.

X CEO Linda Yaccarino condemned GARM's actions in an open letter, emphasising the need to rectify what she describes as a broken ecosystem. This lawsuit follows X's previous legal actions, including suing Media Matters for defamation and the Center for Countering Digital Hate, the latter case being dismissed.

X's advertising revenue has significantly declined since Elon Musk acquired the platform, dropping from $4.5 billion in 2021 to an expected $2 billion this year.

Axios has more on this story.

3. EU TikTok ban abates after company pulls Lite rewards programme

TikTok's potential ban in Europe seems less probable after its parent company, ByteDance, agreed to discontinue its controversial rewards programme.

The short-form video app has been under scrutiny in both Europe and the US for various legal concerns.

In Europe, TikTok faced accusations of breaching child protection laws by making the app addictive for children and exploiting its dominant market position.

The TikTok Lite rewards programme, which incentivised children to watch more videos, was deemed illegal.

ByteDance has now permanently withdrawn this scheme following demands from the EU for an immediate risk assessment due to concerns about the app’s impact on children and mental health.

The EU executive branch confirmed that TikTok has made legally binding commitments to cease the rewards programme and avoid launching similar initiatives. Despite this compliance, TikTok remains under investigation for other potential legal breaches. In the US, TikTok faces similar challenges. In March, the House voted to either ban the app or force its sale to an American-owned company.

While ByteDance's actions have reduced the immediate threat of a European ban, the app's future remains uncertain as investigations continue on both sides of the Atlantic.

For more on this story, visit 9to5Mac .

4. Audiences engage with ad campaigns that break taboos, show study

Advertising campaigns that break taboos can significantly increase attention by up to 21%, according to a new report from Effie UK and Ipsos.

The report, titled 'Breaking Taboos: How Breaking Convention Pays Out,' demonstrates that unconventional, emotionally charged ads can enhance long-term brand growth.

The analysis utilises data from Ipsos’ creative testing database to show how defying industry norms can lead to higher ad engagement.

Ads that evoke empathy and surprise are particularly effective, being around 40% more likely to drive long-term brand growth and decrease price sensitivity.

Despite these benefits, many brands remain hesitant to step outside their comfort zones due to fear of backlash, especially on sensitive issues like women's rights, which saw a 107% increase in apprehension.

Samira Brophy, Ipsos' senior director of creative excellence, acknowledges the risk of backlash but emphasises that well-crafted, confident, and creative taboo-breaking ads can yield substantial benefits.

Effie-winning campaigns exemplify this approach. For instance, adam&eveDDB’s 'The Last Photo' for mental health charity CALM challenged perceptions of suicide and boosted helpline demand by 16.56%, preventing 161 suicides.

The team at Marketing Beat have more on this.

5. UK regulators urge social media platforms to take action over hate

Ofcom has called on social media companies to enhance platform safety immediately, citing an "increased risk" of these sites being used to incite hatred and violence amid ongoing unrest in parts of the UK.

The media regulator issued this appeal in an open letter, emphasising that there is "no need to wait" for new regulations under the forthcoming Online Safety Act, which, although now law, has not yet taken effect.

Under current regulations, video-sharing platforms like TikTok and Snap are required to protect users from content likely to incite violence or hatred.

However, platforms such as YouTube and Elon Musk's X are not bound by these rules. The fact-checking organisation Full Fact has also stressed the urgency of addressing online misinformation.

Ofcom's director for online safety, Gill Whitehead, announced that the regulator will publish final codes of practice and guidance for the new law by the end of the year.

The Online Safety Act aims to provide Ofcom with greater enforcement powers, yet Prof Lorna Woods from the University of Essex highlighted its limitations.

She noted that while the Act would cover the organisation of riots, it might not address subtler forms of disinformation and dog-whistling tactics.

Visit BBC News for more.

Well, there we go another jam-packed edition done and dusted - we hope you found it insightful and interesting.

As ever, if you have a story you think we should be covering then please feel free to get in touch with us.

In the meantime, have a great weekend and be sure to share this week's edition of The Five with your network.

Until next time!